Some members of the crypto community on Twitter X suddenly discovered two transactions selling 9 million Synapse (SYN) through SushiSwap, worth $2.3 million. These transactions caused SYN to drop sharply from $0.41 to $0.3 on Binance.
After investigation, the community believes that the one who is behind these transactions may be the investment fund Nima Capital, a large liquidity provider of Synapse.
In March 2023, Nima Capital proposed to provide a total of $40 million in liquidity to Synapse’s pools within 12 months. Nima Capital believes that having a third party ensuring liquidity on Synapse will help optimize capital mobilization efficiency, in which they don’t have to rely entirely on individuals but only becoming a liquidity provider when there are corresponding benefits.
At that time, this fund wanted to be given 10 million SYN along with 33% of swap fees and bridging fees. This proposal was approved by the Synapse DAO with a success rate of 99.22%. However, Nima Capital allegedly sold SYN only 5 months after they provided liquidity, even though the original agreement was for 1 year.
The community also alleges that after dumping SYN, Nima Capital withdrew liquidity reserves from Synapse. Currently, the fund’s website is offline and their Twitter account has been locked.
Synapse later confirmed the incident, asserting that the protocol was not attacked and user funds are still safe.